Moreover, managing finances is really difficult in our modern society. Thus, you should be prepared to face unexpected difficulties in advance. So, let’s dive into the most important financial tips you should learn when you are close to retirement.

1. Rethink Your Lifestyle

When you are close enough to the retirement, you really need to think about your future financial routine. For instance, it’s recommended to establish a budget and start saving money. Moreover, if you want to own a luxury thing, you should save up for it instead of wasting your entire sum of money.

The statistics prove that 32% of Americans in the age of 50+ are saddled with debt on credit cards. Also, the number of aged people, who haven’t paid off their student debt, has been increasing since 2005.

So, you should be in charge of your finances not to let them rule you. However, if you are in need of money because of an unpredicted situation, you can get personal online loans to satisfy the urgent needs.

2. Don’t Lose Work

Be sure that you will work up to your retirement time. In fact, Americans in the age of 50+ have been jobless for 11 months. It sounds not too much, right? But that can lead to saving not enough money for the retirement. So, always be ready to fulfill the backup plan.

3. Social Security Is a Priority

Most people underestimate Social Security. However, it’s a great way of earning on your money without risk. According to the statistics, elder people can get more than 50% of their income from Social Security. What is more, benefits are always increasing to keep up with inflation. So, you shouldn’t be worried that this is an unreal or dishonest service.

4. Divide by Three

Another great advice is to live by the rule of three. It means that you need to spend a third on paying taxes, another one is for saving and the last third goes for your living. Simply following this rule can make great changes to your future retirement.

5. Don’t Stop

If you think your retirement means only doing favorite hobbies, you are not completely right. There is an opportunity to continue working and getting additional income. In fact, employers will welcome elder employees, because they have enough experience and are more mature than the youth.

6. Check Your 401(k)

In addition, if you invest in another individual fund, be sure you’ve made changes and divisions in your 401(k) account. Also, don’t forget to rebalance your range of investments.

7. Buy a Smaller House

In fact, people being retired spend 35% of the money on housing. It’s one of the biggest spendings in retirement. It’s recommended by the retirement center to buy a house that is twice cheaper than one you own. It’ll free you enough from taxes and chores, as well as give you some additional cash.

8. Be a Smart Spender

Some people are sure that you need to spend 5% of savings in the first years of retirement. However, economist Wade Pfau thinks that this is too much. In his opinion, it’s better to withdraw 3% of the saved money to be stable without a doubt.

9. Get Rid of the Most Taxes

It can be a moment when you fall under more than 15% of tax bracket. So, it’s the time to sell your acquirements and get rid of the most taxes. Capital gain tax for people who are in the 1ess than 15% bracket will be 0%!

10. Hire a Financial Planner

If you feel being hopeless about your future financial situation during the retirement, don’t give up. You can always hire a financial planner. It was strongly advised by John Grable, professor of financial planning at the University of Georgia. He thinks people are underrating the help from this specialist and they would rather be broke than work with a financial planner.

Taking everything said above, when you are close to the retirement, things can seem too scary. But after reading all of the tips, you are ready to make your future bright!

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